Construction Home Loans

Green-light your new dream home construction project

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When you start

                A short-term loan covers the building phase.

When you're ready to move in

                We’ll work with you to choose your long-term loan.

When you need any help 

                You can always turn to The Bank of Missouri team.

Our construction loans provide a solid foundation

Whether you're just starting to plan or ready to build, our construction loans help you finance every stage of your new home. Our local lending team will help nail down the details of an affordable construction loan. When you’re ready to move in, your lender will help you select a permanent mortgage.

Funds can be used for a variety of purposes:

Land purchase and prep
Building materials
Labor
Structural elements
Finishes and fixtures
Installation of utilities

Frequently Asked Questions

Can I use the construction loan to purchase the land?

Yes, often the construction loan can be used to purchase the land and finance building the home.

Do I need a down payment?

Yes, you will need a down payment. If you already own the land, the equity can often be used to satisfy some of the down payment.

How is the money available when needed?

Funds for a construction loan are paid out throughout the project. When a certain step is completed, such as the foundation is laid or roof is installed, we’ll ensure completion. Then, funds can be paid out for the next phase of the project.

How much will my payment be?

During construction, you will only pay the interest on the funds that have been drawn from the construction loan. When the house is completed, we’ll help you select a new, permanent loan. At that time, your payments start covering the main loan amount (principal), as well as the interest.

Do I need to have a contractor selected or lot purchased before I contact a bank?

No! We welcome the opportunity to chat with you early in the process. Meeting with your lender can help:

Determine what lot and home fit your budget
Understand how much you need for a down payment
Give you time to resolve issues that may affect your loan
Review what documentation is needed for a construction loan
Understand what requirements the contractor needs to meet
Make sure you’re ready to go when you find the perfect spot to build

To get started, submit an application online or contact a lender. You may submit an application without having a lot selected or blueprints completed.

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